That is the question I will be asking myself every time I am considering a purchase. Do I need it or want it? I recently have been going over my finances and my income is decent, combined with my wife's it is great. So when I see these numbers on paper I ask myself, "Where does our money go?". First, I redid the budget to see what our fixed expenses were. I usually do that frequently so I can see if there is any way I can cut expenses. Then I look at our checking account past history and past credit card statements to see where we have been spending money. We try to pay for everything in cash or debit and try to limit use of our credit cards. Looking at hard numbers on paper really opens up my eyes. I see a lot of room for improvement in the budget. I noticed that my wife and I dine out too much. I also notice that there are random purchases for things we can do without. I add these numbers and they are significant. How else could I have applied these funds? Savings sounds good. Why not increase what we are putting in savings? What about giving? There are many in need of simple things we take for granted such as a hot meal or a warm coat. Saving more for retirement is also a great idea. I can't help but laugh when someone tells me they are going to depend on social security for their retirement. I am sorry but have they been keeping up with the news? Social Security may not even be around and even if it is, it will not be nearly enough for someone to live on.
I firmly believe that if you are wise with your finances that regardless of recessions or unexpected expenses, you will be fine. My goal this coming new year is to be more attentive with our finances. Next time I am contemplating a purchase, I will surely be asking myself,
"DO I NEED IT, OR WANT IT?"
